Q94 · UPSC Prelims 2020 · Set A · Economy

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With reference to chemical fertilizers in India, consider the following statements:1.At present, the retail price of chemical fertilizers is market-driven and not administered by the Government.2.Ammonia, which is an input of urea, is produced from natural gas.3.Sulphur, which is a raw material for phosphoric acid fertilizer, is a by-product of oil refineries.Which of the statements given above is/are correct?

A 1 only
B 2 and 3 only
C 2 only
D 1, 2 and 3

Correct answer: (b) 2 and 3 only

Explanation

  1. A

    1 only

    1 only. Urea (and nutrient-based subsidy) is still administered, not a free retail market.

  2. B

    2 and 3 only

    2 and 3 only. Ammonia for urea from natural gas; sulphur for phosphoric acid as a refinery by-product. Fertiliser MRP is not fully market-driven.

  3. C

    2 only

    2 only. Under-counts sulphur.

  4. D

    1, 2 and 3

    All three. Statement 1 fails.

Summary. Official key is (b) 2 and 3 only. Urea’s ammonia is gas-based; sulphur for phosphate fertiliser is a refinery by-product. Retail fertiliser prices are not left to the market — urea is controlled and others are subsidised under NBS.

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